kinabalu field - nafas baru a journey – from no potential to rejuvenation

Kinabalu Field - Nafas BaruA Journey – from No Potential to RejuvenationKinabalu Field - Nafas BaruA Journey – from No Potential to Rejuvenation

2NYSE : TLM | TSX : TLM www.talisman-energy.com

• 2012 Kinabalu Oil PSC:

- Progressive PSC Terms

- Start Date: Dec 2012

- Operator: Talisman (60%)

- Partner: PETRONAS Carigali (40%)

• Location

- 55 km NW of Labuan- 28 km SW of Samarang- 2 km SE of KNNAG

• Field Water Depth: 56 m

• Discovery: 1989 and First Oil: Dec 1997

• Cum. Oil Production @1/1/15 = 101.2 MMstb

Location Map Block Details

2012 Kinabalu Oil PSC Overview

LabuanLCOT & LGAS

KimanisSOGT

Kota Kinabalu

Kinabalu


The Journey Started with A Vision.. A New Lease of Life to an Ageing Asset

Maximizes hydrocarbon recovery to >

40%

Accelerates development

schedules

Improve uptime and asset integrity

Smooth transfer of operations

Reduce overall costs through

innovative solutions


The shared vision with PETRONAS and PCSB has progressively materialized.. After just over 18 months, we have achieved ~20,000 bopd potential through various initiatives

7,20

0

20,0

00

Asset Transfer

Aug’14

Infill started Prod > 10kbdFDP

“Quintupling” Technical Potential

Production optimisation Idle string / well restoration 6 slot recovery & infill

sidetracks Improved operating efficiency

No Further ActionNatural decline

Dec’12 Sep’13 Apr 14 Feb’13


Multi-phased approach to maximize production and manage mature assets

Kinabalu

Production Operations

Early Rejuvenation

RedevelopmentIntegrated Operations

Well interventions Field Development

Update Six infill wells

New Platform New Facilities Additional Infill Drilling

and Workover Campaign

Secondary Oil Recovery

Synergies with PETRONAS Carigali in Sabah

Improve the HSE Performance

Improve Field Reliability

Platform Debottlenecking Project

LP Separator KN 114st

1 2 3 4


Flexible Approaches to Optimize and Accelerate Development & Rejuvenation Infill Schedule

Innovative Approach to Modelling / Modelling

Technology

Subsurface Data Sharing


L2 Static Reservoir Model

Aug 2014

Use Pre-Existing

approved models*

1st three infill well approved through TRC

Additional 3 wells approved

program

1st well completed

Continuous drilling

Dec 2012

Feb 2013 Oct 2013 Nov 2013

* Pre-existing approved models used to accelerate Rejuvenation

MR#2/3/4 process, prior to completion of updated models

Innovative Modelling

Jan 2013

Rejuvenation Infill WellsNotable Milestone Achievements through innovative approach on modelling


A comprehensive re-evaluation of 30+ reservoirs

Kinabalu Development StudiesComprehensive re-evaluation of 30+ reservoirs

Infill well locations

Pressure maintenance

EOR evaluation Reservoir management plan

Multiple realisations









K transform

SW Calc

K transform

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K transform

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K transform

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Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Scenario 7 Scenario 8 Scenario 9

Zonal Trend Map

No Trend Map

Regional Trend Map

Zonal Trend Map

No Trend Map

Regional Trend Map

Zonal Trend Map

No Trend Map

Regional Trend Map

Very Long VariogramLong Porosity VariogramZonal Porosity

Variogram

SECTOR MODEL (structure)

Multiple Static Realizations

New static models for each group of reservoirs > 10 MMbbl STOIIP – 10 models constructed

Modelling Technology


Rejuvenation – Infill Well Targets

KN-114ST3 KN-106ST4 KN-110ST4 KN-116ST1 KN-109ST3 KN-117ST2

Well Type SingleSelective

Deviated Dual

Single Horizontal

Single Selective Single Selective Deviated Dual

Objective Primary objective:L2/3/4 reservoirs

Primary objective:K2 and J6/7/8 reservoirs

Primary objective:Oil in X3_1 reservoir. Secondary objectiveAppraisal of U and W reservoirs

Primary objective:L2 reservoirs and backup on the L3/4 reservoirs

Primary objective:K2 reservoirs

Primary objective:O5/6 reservoirs.Secondary objective:Tier 3 M6/7 virgin reservoirs

TD 8,712 ft TVDss11,000 ft MD

8,526 ft TVDss11,788ft MD

10,330 ft TVDss14,105 ft MD



10,360 ft TVDss12,620ft MD

Status Completed on L2, L3, L4

Completed on J6/7 and K2

Completed on X3 as horizontal

Completed on L2

Completed on K2

Completed M6/7 and O5/6


Field Cross-section - Rejuvenation Wells

KN-117S2 KN-110S4

KN-114S3

KN-116S1KN-106S4

KN-109S3

KN-116S1

KN-106S4

KN-109S3

KN-110S4

KN-117S2KN-114S3

East Fault Block

Main Fault Block


Data sharing effort with PCSB’s adjacent fields improved reservoir potential assessment and infill targets

Realization of potential of 2,700 bopd from X3

reservoir (KN-110ST3)

Data Sharing

Original available data

Post data-sharing with KNNAG

X3 Reservoir, East BlockCross PSC data sharing for

improved reservoir description


Comprehensive Data AcquisitionFor Future Optimisation

Collect NOW for better optimisation TOMORROW

Co

red 9

0ft1

00%

reco

veryC

ored

65ft

100

% re

covery

Improved reservoir description

Extensive P measurement in 1st 2 wells

Data Gathering

KN-114ST3 KN-106ST4 KN-110ST4 KN-116ST1 KN-109ST3 KN-117ST2

Full LWD (GR / Res / Den / Neut)

ReservoirPressures

(D Reservoir Only)

NMR(MRIL / CMR)

(CMR Only)

Sonic Scanner(Dipole)

(Dipole Only)

UBI

Conventional Core


Sand Mitigation SolutionsWell Design/Technology

Orientated perforation to maximise allowable drawdown and minimise risk of sand production

Perforated in vertical maximum stress orientation (10/350 degrees)

Comprehensive sand study Based on existing and newly acquired data from

Kinabalu and KNNAG

SAND STUDY ORIENTATED PERFORATION


Drivers to Success

Static & Dynamic for

30+ Reservoirs

Integrated Subsurface Drilling &

Wells

NMR/CMR Acquisition

IOR/EOREvaluation

Extensive Early data

Acquisition

Data Sharing across PSCs

OrientatedPerforations

CT Conveyed Saturation

Tool

Multi-Azimuth 3D

PSDM

Well Startup & Flow Control

Core Acquisition

MPM/ JV / TLM

AlignmentInnovative

Commercial Approach (PVB)

Facilities Operational

Improvement

Integrated Assets


Thank you

kinabalu field - nafas baru a journey – from no potential to rejuvenation

Documents

tlm tsx

rejuvenation slide

reservoirs infill

modelling slide

feb13 slide

oil production

modelling technology

asset transfer aug14